Effective June 11, 2025

NYC FARE Act: What Renters Need to Know

The Fairness in Apartment Rental Expenses (FARE) Act changed how broker fees work in NYC. Here's what it means for you.

The Bottom Line

Whoever hires the broker, pays the broker

Since landlords hire listing brokers to find tenants, landlords pay the broker fee — not you. This is NYC law as of June 11, 2025.

What's Prohibited

  • Landlord's agents charging tenants broker fees
  • Conditioning a rental on tenant hiring a broker
  • Dual agents charging tenants

What's Still Allowed

  • You can hire your own tenant's broker and pay them
  • Security deposits (max 1 month by law)
  • Application fees (capped at $20)

Watch Out for Workarounds

Some landlords and brokers are trying to get around the FARE Act by charging fees under different names:

  • "Administrative fees" — Often just broker fees in disguise
  • "Technology fees" — May violate the law if excessive
  • "Management fees" — Legitimate for services, suspicious if one-time
  • "Application processing fees" — Legal cap is $20

If a fee seems like a broker fee by another name, it may be a FARE Act violation. The NYC Department of Consumer and Worker Protection (DCWP) received over 1,100 complaints in the first months of enforcement.

How to Report a Violation

File a Complaint

Report violations to NYC DCWP. Violators face fines up to $2,000. You can also sue in civil court.

NYC DCWP Broker Fee Info →

Call 311

You can also report violations by calling 311 or visiting the NYC 311 website.

NYC 311 Portal →

What Move-In Actually Costs Now

Before FARE Act

  • First month's rent: $3,000
  • Security deposit: $3,000
  • Broker fee (15%): $5,400
  • Total: $11,400

After FARE Act

  • First month's rent: $3,000
  • Security deposit: $3,000
  • Broker fee: $0
  • Total: $6,000

You save $5,400

Find FARE Act Compliant Apartments

All listings on Neptune comply with the FARE Act. Search verified apartments with real photos.

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This page provides general information about the NYC FARE Act and is not legal advice. For specific legal questions, consult an attorney or contact NYC DCWP directly. Information current as of June 2025.